Calculate the current ratio for each company.  Be sure to show your calculations.                                  Current Assets                     Current Liabilities Company 1               89,378                                    80,610 Company 2               90,114                                     19,310   Company 1:   Company 2:    Comment on the results:  Which company has the strongest liquidity position?

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.5P: Working Capital and Current Ratio The balance sheet of Stevenson Inc. includes the following items:...
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Calculate the current ratio for each company.  Be sure to show your calculations.

                                 Current Assets                     Current Liabilities

Company 1               89,378                                    80,610

Company 2               90,114                                     19,310

 

Company 1:

 

Company 2: 

 

Comment on the results:  Which company has the strongest liquidity position?

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